The applicability of compacted loess-cement used as alternation cover at landfill sites has been proposed in this paper. Laboratory tests were conducted on compacted loess soil improved by addition of cement for compressibility, contractility and permeability. Tests results showed that the plastic limit of loess-cement increased with the increasing of the content of cement, but there was contrary regular in the liquid limit and the maximum dry density. Experiment data also indicated that adding 5~10% cement into the loess had more remarkable effect in improving the compressibility and contractility of the mixture. The hydraulic conductivity values of loess-cement could be nicely able to the mark of user requirements by increasing the thickness of loess-cement layer based on the equivalent principle for the volume of flow. So compacted loess soil by addition of 5~10% cement is feasible for alternative cover at MSW landfill sites and the new scheme of cover has very high value of application and wide prospects.